Author: Patriot Capital

Patriot Capital, a multi-strategy middle market investment firm, is pleased to announce an add-on subordinated debt and equity co-investment alongside Naprotek, a portfolio company of Edgewater Capital Partners. Patriot’s investment supported Naprotek’s acquisition of SemiGen, a provider of products and services to the RF/Microwave community across markets including Defense, SATCOM, Space, and Advanced Communications.

The acquisition of SemiGen increases Naprotek’s capabilities to include advanced RF/Microwave products, assembly, and test services, and expands Naprotek’s reach across the United States. Naprotek is an electronic technology solutions company and a leading provider of quick turn PCBA, design for manufacturability, system integration, and testing services for high-reliability applications serving the Defense, Space, Medical, and Semi-Cap Equipment markets.

Founded in 2009, SemiGen is based in Londonderry, New Hampshire. SemiGen’s products include passive and active semiconductor components ranging from attenuators, capacitors, diodes, filters, and resistors to complex thin film circuits. Their manufacturing services span from RF/Microwave and PCB assembly to performance testing and in-house ion beam foundry.

For more information on this transaction, please contact:

• Kyle Griffith
• Dan Yardley

Patriot Capital, a multi-strategy middle market investment firm, is pleased to announce a new subordinated debt and equity co-investment alongside CenterGate Capital in support of CenterGate’s acquisition of Teeny Foods.

Teeny Foods is a developer and contract manufacturer of frozen, filled baked snacks and handheld meals—sticks, bites, pull-aparts, and calzones—in a variety of dough flavors, product shapes, fillings (including cheese and fruit), and topicals. The company’s products, sold by branded food manufacturers through foodservice and retail grocery channels, are available in individual oven/microwave safe wrappers, multipacks, resealable pouches, and bulk packaging formats.

Teeny Foods was founded by the Teeny family in 1964 and is headquartered in Portland, Oregon. Teeny represents Patriot’s fourth investment in the food supply chain in the past four years, alongside current portfolio companies, FreshEdge, MSI Express, and Eddy Foods.

“Patriot brings prior food-deal experience and we believe they will be a great partner for us and Teeny Foods as we support the company through its next stage of growth,” commented Jeff Kovick, Managing Director at CenterGate.

For more information on this transaction, please contact:

• Charles Adams
• Jonathon Cope

Patriot Capital, a multi-strategy middle market investment firm, is pleased to announce a new debt and equity co-investment alongside Rotunda Capital Partners in the formation of American Equipment Holdings (“American Equipment” or the “Company”). The Company represents the formation of the premier overhead crane and hoist solutions platform in the Western U.S. through the combination of American Equipment, Pacific Crane & Hoist, and Allied Crane.

The consolidated entity is one of the largest independently owned overhead crane and hoist solutions providers in the country, serving over 2,000 customers across 14 strategic locations throughout Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah, and Wyoming. Together, American Equipment Holdings provides comprehensive solutions for everything related to customers’ overhead crane and hoist needs, including new and replacement equipment, ISO certified fabrication, automated systems, system modernizations, parts, inspections (including OHSA and Cal-OSHA), preventative maintenance and repair services and training.

Rotunda’s acquisition of American Equipment Holdings was completed in partnership with Adam Zimmerman, American Equipment’s president and CEO, and Michael Perera, founder of Pacific Crane & Hoist. Mr. Zimmerman and Mr. Perera will maintain ownership interest in the Company and continue to hold leadership positions in the Company.

For more information on this transaction, please contact Jonathon Cope.

Patriot Capital, a multi-strategy middle market investment firm, is pleased to announce the sale of its portfolio company, D&S Community Services, to The MENTOR Network, a premier provider of home and community-based health care and support services.

D&S Community Services, headquartered in Austin, Texas, is a leading provider of residential and community-based services to individuals with intellectual and developmental disabilities (I/DD). With locations in Texas, Tennessee, Kentucky, and New Jersey, D&S Community Services offers a broad range of services—from residential and in-home support to day habilitation programs, and specialty therapy and nursing services. The combined company will offer a comprehensive array of supports and services nationwide to individuals with I/DD, enabling delivery of high-quality services to clients and families with a fully built-out infrastructure across multiple care settings.

Patriot Capital Group originally invested in D&S Community Services in 2005 through Patriot Capital I and again in 2015 through Patriot Capital III, by providing debt and equity financing to support Comvest Partner’s acquisition of D&S. During the two investment periods, D&S Community Services grew from largely a single state $29 million/$2.8 million EBITDA provider of I/DD services with approximately 108 occupied homes and 560 clients to a multi-state and services provider with 330 managed homes and over 2,200 clients.

“We are pleased with the outcome of seeing D&S join The MENTOR Network to expand services that support the health and wellbeing of the special needs community,” said Charles McCusker, managing partner at Patriot Capital. “Our investment in D&S exemplifies both our implicit commitment to responsible investing that we’ve been using for the past 20 years and our formalized Responsible Investing strategy which we announced this quarter. We’ll continue to use our Responsible Investing framework to invest in and support portfolio companies that advance this cause. We have enjoyed our partnership with Mickey and the D&S team in creating growth and look forward to seeing their continued success.”

“Patriot Capital has been a steadfast partner for D&S, providing strategic counsel and supporting our growth strategy as we expanded into new markets and enhanced our service offerings,” said D&S Community Services Chief Executive Officer Mickey Atkins. “We look forward to joining The MENTOR Network and continuing our work of promoting independence and quality of life for individuals with special needs.”

For more information on this transaction, please contact Charles McCusker or Jonathon Cope.

Patriot Capital, a multi-strategy middle market investment firm, and First Capital Partners, a junior capital investment firm, are pleased to announce the sale of their portfolio company, Advantage Engineers, LLC, to Network Connex, a provider of mission critical network deployment solutions in fiber optics, data centers, and wireless and video networks.

Headquartered in Columbia, MD, Advantage Engineers is a nationwide engineering and design firm bringing innovative solutions to telecommunications infrastructure projects. Advantage Engineers offers specialized solutions, including site acquisition, planning and surveying, civil, structural and electrical engineering, zoning and permitting, construction management, and inspection and verification for both wireless and fiber deployments. Advantage Engineers will operate under the Network Connex umbrella, forming the backbone of its Engineering & Professional Service Line and complementing Network Connex’s existing Fiber, Data Center, and Wireless and Construction Service Lines.

First Capital Partners and Patriot Capital invested in Advantage Engineers in 2016 in a recapitalization transaction to support existing management/owners to develop and pursue its growth strategy culminating in the sale to Network Connex. During the investment period, Advantage Engineers completed the divesture of its geotechnical engineering division to a strategic acquirer, significantly expanded its geographic footprint by acquiring a West Coast telecommunications site acquisition and engineering firm, as well as opening new offices.

“We are pleased with the outcome of this investment for our respective funds and believe that Advantage Engineers is well positioned to continue to grow its business as part of the Network Connex platform, particularly as the 5G telecommunications network infrastructure roll out continues to accelerate,” commented Young Park, managing director at First Capital Partners and former board member of Advantage Engineers.

“Advantage Engineers experienced rapid growth and our hats are off to the management team who led us through the investment period whereby Advantage Engineers’ core telecommunications revenues grew by over 300% and EBITDA grew by over 600% in the last five years,” said Charles McCusker, managing partner at Patriot Capital and former board member of Advantage Engineers.

“We are excited about the platform we are joining at Network Connex, and we want to thank our management team and our former capital partners at First Capital and Patriot Capital who provided strategic guidance for the last five years and helped to position Advantage Engineers for its next growth phase,” commented John McGrath, chief executive officer of Advantage Engineers.

For more information on this transaction, please contact Charles McCusker or Stacey Wittelsberger.

Patriot Capital Group, a multi-strategy middle market investment manager and advisory services platform, announced today it has hired Charles Adams as Associate Managing Director for the Southwest region.

Mr. Adams will be responsible for origination, underwriting/execution, and portfolio management. He brings over $3 billion of credit transaction experience and nearly a decade of partnering with middle market private equity sponsors and management teams, having worked at Texas Capital Bank and GE Capital Markets. Mr. Adams is a registered representative holding active Series 7, 63, and 79 securities licenses.

Charles McCusker, Managing Partner of Patriot Capital Group, said, “We are delighted to have Charles join the Patriot Capital team to further expand our presence in the Southwest. As we continue to grow our 20-year alternative asset management business, Charles’s experience in developing long-term relationships with various origination partners will help propel our firm’s next stage of growth.”

“I was drawn to Patriot Capital’s hands on, relationship-driven focus on deal sourcing and portfolio management,” said Mr. Adams. “I am excited to join the Patriot Capital Group and contribute to the firm’s continued success in helping companies meet their objectives and deliver results.”

Patriot Capital is pleased to announce a new subordinated debt investment to support Audax Private Equity in their existing platform, United Urology Group (UUG). Patriot’s investment supports UUG’s continued expansion of its existing Arizona footprint, with the acquisitions of Arizona Institute of Urology and Urological Associates of Southern Arizona.

Headquartered in Owings Mills, MD, United Urology Group is a leading urology management services organization whose member groups of urology practices include: Arizona Urology Specialists with offices in the greater Phoenix/Scottsdale area; Chesapeake Urology, with offices located throughout Maryland and Delaware; Tennessee Urology, based in the greater Knoxville area and Eastern Tennessee; and Colorado Urology, located in the greater Denver and Front Range areas.

UUG members’ collective staff number more than 1,500 employees, including 220+ physicians and advanced practice providers. UUG’s vision is to be the nation’s leading urologic group practice through its commitment to accessible, high quality, cost effective care, patient satisfaction, and community involvement, assuring sustainable growth and security for its physicians and employees.

This is Patriot Capital’s 11th investment in healthcare services. For more information or industry knowledge sharing, please contact Stacey Wittelsberger.

For more information on this transaction, please contact Stacey Wittelsberger, Charles McCusker or Sean Bilbrough.